The group has launched an unexpected €2.5bn rights issue with pre-emption rights at a €1.25 issue price. The operation will enable the group to align its NPA coverage with its peers and thus to enjoy a similar trajectory in terms of asset quality, cost of risk and profitability normalisation. Above all, the group will comply with the Bank of Spain’s new circular. However, we see the capital increase as under-calibrated leaving some equity shortfall and above all, the group&rsq
30 May 2016
The capital increase does not solve everything
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The capital increase does not solve everything
The group has launched an unexpected €2.5bn rights issue with pre-emption rights at a €1.25 issue price. The operation will enable the group to align its NPA coverage with its peers and thus to enjoy a similar trajectory in terms of asset quality, cost of risk and profitability normalisation. Above all, the group will comply with the Bank of Spain’s new circular. However, we see the capital increase as under-calibrated leaving some equity shortfall and above all, the group&rsq